Last-minute demands by Hamas had raised doubts about whether the group would go ahead with the resignation.

Nour Odeh, Al Jazeera's correspondent in Gaza, said that disagreements remain between Hamas and Fatah over the position of interior minister and the future of Hamas's own 5,000 strong internal security force.

"There were a lot of sticking points that the Mecca agreement did not address."

Hamas and Fatah reached an agreement earlier this month in the Saudi capital Mecca after months of political deadlock.

The crisis spilled over into open conflict in which more than 100 people were killed.

International pressure

Abbas has asked the current government to continue until a unity administration can be formed.

Armed groups have clashed on Gaza's streets [AFP]

The Palestinian president said: "I call upon you to respect Arab and international resolutions, and the agreements signed by the Palestine Liberation Organisation."

Hamas has never formally joined the PLO.

Haniya said he would "work in accordance" with Abbas's letter of designation.

It was unclear whether this went far enough towards meeting the demands of the quartet of Middle East negotiators (the US, EU, UN and Russia) that Hamas recognise Israel, accept past peace deals and renounce violence.

US boycott

However, the US has said it will continue to boycott all the new government's ministers, including non-Hamas members, unless international demands on policy towards Israel are met, a Palestinian official and diplomats said.